you have $10, what is the best way to spend $10 at the mall in music...
you have $10, what is the best way to spend $10 at the mall in music vs. games?
Homework Answers
To spend $10 in the best way, the marginal utility of music to its price should be equal to marginal utility of games to the price of games ratio. It will give maximum utility in $10 and it is the best result.
As an expression:
MU of music / Price of music = MU of games / Price of games
if above conditions are met, then utility is maximized. it will give the best use of $10.
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